This is real invasion of privacy. See the Data Sharing policy and Open Government platform.
Under the relevant provisions of Aadhar and UID, the date can be shared under orders of competent court. But competent court is not defined. An officer of the rank of Joint Secretary can decide whether to divulge or not. Thus collecting biometric data and sharing without consent of party is illegal. Moreover most of the companies doing the work have overseas limbs and they will be forced to divulge data.
Government saying that Aadhar is not compulsory but making it applicable to various schemes is illegal. WP(C) 494 of 2012 is pending in Hon'ble Apex Court. Till its disposal, such proceedings by Governments are not in good spirit.
Why should an Indian Citizen give biometric data to Government when it can be shared by the Government without his consent..
When I sent an email to Open Government Platform seeking clarification regarding sharing of biometric data collected by state, I got an evasive reply.